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Invest Like Warren Buffett With These ETFs

Following investing strategies of billionaire investor Warren Buffett is everyone’s dream. Buffett’s Berkshire Hathaway Inc. (BRK.B - Free Report) has added more than 100% over the last five years (as of February 15, 2018), way better than the 73% gain of the broader market ETF SPDR S&P 500 ETF (SPY - Free Report) during the same time frame.

The winning trend of Berkshire Hathaway is continuing as the entity tacked on about 12% in the last three months compared with 5.6% offered by the key U.S. equity gauge S&P 500 index-based ETF.

Notably, Berkshire Hathaway's 13F filing disclosing the fourth-quarter stock holdings has shown some major changes. Below we highlight those alterations in portfolios, so that retail investors can bank on some winning ETF and stock investment strategies.

Take a Bite of Apple

Buffett is outright bullish on Apple. This is evident from his raising of stake in Apple by 23.3% to 165.3 million shares. Last year, Buffett indicated that consumers ‘want the product’ (or Apple products) despite its price. The in-fashion stock gained more than 9% in the last five days (as of Feb 15, 2018), mostly reflecting Berkshire Hathaway’s interests. Apple’s five-day gains of 6.3% came in comparison of 3.5% increase in SPY (as of Feb 16, 2018).

Berkshire scrapped about 94.5% of its IBM holdings, leaving only 2.05 million shares. In his latest move, Buffett cut IBM holdings by about 32%. Per an article published on CNBC, Buffett last year said "IBM is a big strong company, but they've got big strong competitors too."

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At the center of everything we do is a strong commitment to independent research and sharing its profitable discoveries with investors. This dedication to giving investors a trading advantage led to the creation of our proven Zacks Rank stock-rating system. Since 1988 it has more than doubled the S&P 500 with an average gain of +25% per year. These returns cover a period from 1988-2017. Zacks Rank stock-rating system returns are computed monthly based on the beginning of the month and end of the month Zacks Rank stock prices plus any dividends received during that particular month. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. The monthly returns are then compounded to arrive at the annual return. Only Zacks Rank stocks included in Zacks hypothetical portfolios at the beginning of each month are included in the return calculations. Zack Ranks stocks can, and often do, change throughout the month. Certain Zacks Rank stocks for which no month-end price was available, pricing information was not collected, or for certain other reasons have been excluded from these return calculations.

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